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We are your trusted guide to short-term rental financing in Florida. We help borrowers secure loans to purchase or refinance short-term rental properties (vacation rentals, Airbnb, condotels, etc.). Let us navigate your financing journey with ease and expertise.
Florida, known for its stunning beaches and world-class theme parks, is a vacation hot spot drawing in millions of visitors each year. Investing in a vacation rental property here could be a significant revenue driver, hence the need for a vacation rental loan.
With a vacation rental loan, you can tap into this lucrative market. This type of loan is designed specifically for buying or refinancing properties meant for short-term rentals. It empowers you to leverage the Sunshine State’s thriving tourism, ensuring a steady stream of income.
Qualifying for vacation rental loans can be challenging due to traditional lenders’ stringent requirements and the unpredictable income associated with short-term rental properties.
Lenders often view a short-term rental loan as risky because the property's income can be highly variable, dependent on factors such as seasonal demand and fluctuations in tourism. Some lenders require a history of stable rental income, which can be difficult to provide for a new or seasonal short-term rental.
Lenders may be wary about the increased wear and tear or potential property damage that can come with high tenant turnover in short-term rentals. Additionally, the necessity for frequent cleaning, maintenance, and tenant management may add extra layers of complexity that lenders consider when assessing applications for short-term rental loans.
Short-term vacation rental financing can be expensive. These properties are considered investment properties, which typically come with higher interest rates compared to primary residence loans, making them more expensive to finance.
Traditional lenders shy away from vacation rental property loans due to the variable income, wear and tear, etc.
However, we are not a traditional lender. As a mortgage broker in Miami with a network of creative, non-QM lenders, we have access to programs designed just for short-term rental properties.
Our short-term rental property loan programs include:
Want to qualify solely on the property’s income? A debt service coverage ratio (DSCR) loan allows you to qualify based on the projected income from the property. When financing a vacation rental property, the lender will take the average rental income over the past 12 months and/or rely on the appraiser’s rental survey.
Proof of your own personal income is not required.
Want to qualify solely on your own personal income? We have short-term rental mortgage programs for employed as well as self-employed borrowers. No tax returns required. Qualify on more streamlined documentation (e.g., WVOE, bank statements, P&L statement).
Proof of the short-term rental property’s income is not required.
Don’t want to prove any income at all? Sometimes it’s not possible to adequately document the property’s income or your personal income. Or you may be under a time crunch. If so, a short-term bridge loan can be the solution. A bridge loan is collateral-based (i.e., solely based on the appraised value of the property), so you can qualify quickly without proof of income, tax returns, debt-to-income issues, or other standard underwriting requirements.
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We are expert problem-solvers when it comes to loans for a vacation rental property.
DAK Mortgage recently guided a foreign national (a U.K. client based in the Cayman Islands) to successfully close a 7-figure cashout refinance, short-term real estate loan in Reunion, Florida, unlocking capital for further investments.
For our client, a self-employed green card holder from Argentina, we previously obtained a bridge loan for him to purchase an Airbnb in the Tampa, Florida area under a time crunch. We later helped him refinance into a longer-term loan for vacation rental property, using just a P&L statement to show his income.
Our client, a medical doctor, had no problem showing his personal income, but he wanted to buy a condotel unit in an upcoming, trendy building in Midtown Miami. We found a lender with the risk appetite for short-term real estate loans where the properties are rented on the shortest term possible (daily).
Yes, short-term rentals are legal in Florida. However, regulations can vary by city and county. Some jurisdictions require registration, permits, or compliance with specific rules. It’s essential to research local laws and regulations in your desired geographic area before investing in a short-term rental property.
Yes, you can obtain a business loan for a vacation rental property. These loans can be a powerful tool for investors, providing capital for purchasing or upgrading properties. Remember, each lender has unique criteria, so it’s crucial to find one that understands the vacation rental business.
In Florida, a short-term rental typically refers to a rental period of less than six months. However, local laws may define it differently, so check the regulations in the specific city or county where the property is located to determine if your property of interest is a short-term rental property.
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DAK Mortgage is a licensed mortgage broker that can navigate you through the process of finding the right loan for your needs.
The content provided within this website is presented for information purposes only. All programs, rates, terms, and conditions are subject to change without notice. Loan approval is dependent on borrower credit, collateral, financial history, program availability, and other factors that are subject to change without notice. Other restrictions may apply. This is not an offer to lend. DA Krebs, Inc. dba DAK Mortgage | NMLS #1922428 www.nmlsconsumeraccess.org | Florida Mortgage Broker License #MBR3365 | Equal Housing Opportunity
Contact
David A. Krebs
NMLS # 285280
DA Krebs, Inc. dba DAK Mortgage
NMLS # 1922428
1080 Brickell Avenue, #3106
Miami, Florida 33131
